The Trades Union Congress (TUC), which represents nearly 6
million British workers, said that the growing number of
low-paid, self-employed workers who work irregular hours earn
significantly less than conventional employees and therefore pay
less tax and national insurance.

Those losses amount to an estimated loss of over £75
million a week to the Treasury.

Mobile apps like Uber, Deliveroo, and Jinn are driving the
expansion in Britain of a "gig economy" labour market
characterised by short-term contracts and freelance work rather
than fixed terms of employment and regular working weeks.

The TUC said those employed in the gig economy are also likely to
earn significantly less than their counterparts, meaning they are
more likely to depend on in-work benefits, including tax credits
and housing benefit.

Take a look at the chart below for a full breakdown of the
impact:

TUC

"The huge rise in insecure work isn’t just bad for workers. It’s
punching a massive hole in the public finances too," said TUC
general secretary Frances O'Grady.

“Zero-hours contracts and low-paid self-employment are costing
the economy billions every year in lost tax revenues. That’s
money that could be spent on stopping the crisis in our schools
and hospitals and making sure every elderly person gets decent
care," she added.

There are signs that employers within the gig economy may soon be
forced to take a more conventional approach to workers' rights.

Last week a London court ruled that a plumber was entitled to
full employment rights despite being technically self-employed,
in a case seen as a key test which could force employers to start
offering irregular workers benefits including pensions and
holiday pay.

O'Grady said: "Bosses who employ staff on shady contracts are
cheating all of us. That’s why we desperately need more decent
jobs that pay a fair wage."